Anderson Insulation Co. v. Department of Public Health
Anderson Insulation Co. v. Department of Public Health
Opinion of the Court
Fundamentally, this is a reprise of a controversy about urea formaldehyde foam insulation (UFFI) that was the subject of Borden, Inc. v. Commissioner of Pub. Health, 388 Mass. 707, cert. denied, 464 U.S. 936 (1983).
1. Developments in the wake of the Borden case. After the Borden decision, and in accordance with it, DPH adopted regulations under which it would adjudicate individual claims for a certificate of right to repurchase. See 105 Code Mass. Regs. § 650.222 (1984, 1986, 1987, and 1988). Such a certificate requires the installer to pay for removal of the insulating material as well as to reimburse the customer for the purchase price of the installation. Ibid. The repurchase regulations entitle owners of buildings with UFFI to request repurchase any time before July 1, 1991, or within eighteen months after the date the owner acquired the building, whichever is later. 105 Code Mass. Regs. § 650.222(2)(d) (1989) (effective June 30, 1988). To do so, a claimant is to forward to DPH, among other information, the date of installation of UFFI and, if known, the name of the installer, distributor, and manufacturer of the UFFI. If a responsible member of the UFFI industry is identified, DPH is to provide, within a reasonable time, an adjudicatory hearing, limited to the factual issue of whether the particular UFFI had been installed by the industry member charged. 105 Code Mass. Regs. § 650. 222(3)(a)(2) and (3) (1984, 1986 and 1987). As the hearing is limited to that question, the regulations provide that
Subsequent to the initial promulgation of the regulations, the Legislature, through St. 1985, c. 728, § 4, established the “UFFI Trust Fund,” financed by voluntary contributions from UFFI industry companies. The fund pays for the removal of UFFI from homes when the formaldehyde concentration in the ambient air exceeds 0.10 parts per million. St. 1985, c. 728, §§ 2 & 3. The trade-off for the voluntary contributions to the trust fund is that contributors are relieved from their obligations to pay for removal and reimbursement under the repurchase regulations. St. 1985, c. 728, § 4. Neither of the plaintiffs made a contribution to the trust fund, and they are, therefore, subject to the previous repurchase regulations.
2. Continuing validity of the UFFI ban and repurchase regulations. In consequence of concern about respiratory irritations, eye and skin irritations, and adverse neurophysical effects from the off-gassing of UFFI, DPH in 1979 declared UFFI to be a hazardous substance, banned its sale in Massachusetts, and required its repurchase, as described above. See Borden v. Commissioner of Pub. Health, 388 Mass. at 712. Whatever the scientific merits of those measures in 1979, the plaintiffs argue that by 1990, when the first of the complaints involved in this appeal was filed, the harmful gaseous products of UFFI that had been installed prior to the ban had so dissipated that there was no longer a factual basis for the repurchase regulations. For support of that position they rely particularly on the trust fund act, which says removal of UFFI ought not to be required if formaldehyde concentrations are 0.10 parts per million or less. The UFFI repurchase regulations do not contain a parts per million floor below which the regulations do not apply.
Both the ban and the regulations were approved (subject, as discussed, to the requirement of introducing adjudicatory proceedings as to each repurchase claim) in the Borden decision. DPH, therefore, takes the position that the plaintiffs, who were parties to the Borden case, are foreclosed by settled principles of former adjudication from litigating anew the rationality of the repurchase regulations. The essential ingredients for application of former adjudication (or, in older
Whether there was a causal connection between low level off-gassing from UFFI and physical complaints from consumers had, however, been very much on the agenda of the Borden case. Causation, the court decided, was a nonfactor because under the governing statute, G. L. c. 94B, once the DPH categorizes a material a hazardous substance, the manufacturer, distributor, or retailer of the material so categorized is bound to repurchase without any demonstration that the material caused the claimant physical ill. G. L. c. 94B, § 8. It was enough, under DPH’s then applicable regulations, to show that the claimant had symptoms associated with exposure to UFFI, was an owner of a building with UFFI in it, and that the person claimed against had installed that UFFI. Borden, Inc. v. Commissioner of Pub. Health, 388 Mass. at 730. 105 Code Mass. Regs. § 650.222(E)(9)(a) and (b) (1980).
As to the provision of the trust fund act that requires formaldehyde to be present in concentrations exceeding 0.10 parts per million to qualify for a claim against the trust fund, St. 1985, c. 728, §§ 1 & 3, this was, indeed, a new criterion introduced in favor of installers who contributed to the fund and thereby expedited compensation to UFFI consumers. It is not necessary, for example, under the trust fund procedure to establish who installed the UFFI. That does not constitute a declaration that concentrations of 0.10 or less are harmless. Indeed, a concentration greater than 0.10 is an alternative
3. The administrative proceedings leading to issuance of the repurchase certificates. The first attack on the administrative proceedings alleges their arbitrariness because the regulations required no showing of dangerous formaldehyde concentration or health problems associated with UFFI off-gassing. In a different procedural form, i.e., review under G. L. c. 30A, § 14, this is the same argument discussed in the preceding section of this opinion. The answer, as before, is that G. L. c. 94B does not require a dangerous level of formáldehyde; if a material has been declared a hazardous substance, the consumer may demand its removal as well as reimbursement of the cost of buying the material and paying for its installation.
The second point of attack is that DPH delayed unreasonably in issuing the repurchase certificates. In 1990, when the complaints were filed, there was a deadline of July 1, 1991, for requesting repurchase certificate claims, and all thirty-two claims here involved were made before that due date. 105 Code Mass. Regs. § 650.222(2)(d) (1989) (effective June 30, 1988). The plaintiffs complain, however, that DPH failed to notify
The plaintiffs have also argued that the claims are in violation of the limitations periods set forth in G. L. c. 260, § 2B (tort actions arising from improvements to real property), § 5A (consumer protection actions), and § 18 (subjecting the Commonwealth to various statutes of limitations). The repurchase claims, however, arise not under the common law or statutes creating rights to be vindicated in a court of law, but under an administrative scheme promulgated by the Commissioner of Public Health pursuant to a broad delegation of power in G. L. c. 94B, § 8. The statutes of limitations that the plaintiffs would have us apply in this case specifically apply to tort and consumer
4. Conclusion. The judgments of the Superior Court, affirming the repurchase decisions of DPH and the judgment declaring that the right to repurchase certificates are valid and binding on the plaintiffs-installers, are affirmed.
So ordered.
The nature of UFFI and those' characteristics that caused it to be classified a hazardous substance under G. L. c. 94B are compendiously set out in the Borden opinion.
An “installer” of UFFI, as defined in 105 Code Mass. Regs. § 650.222(1) (1984), means any person who made a retail sale of UFFI.
This contention, appearing as a second count in the five complaints, was raised in the form of a request for declaratory relief under G. L. c. 231A.
This contention, count one in the complaints, was raised in the form of review under G. L. c. 30A, § 14, of administrative agency action.
In later editions of § 650.222 (1984, 1987, and 1994), the requirement of showing physical effects associated with UFFI was dropped.
The Department of Public Health’s brief sets the number at eighteen but we arrive at a count of twenty-two on the basis of a table appended to the plaintiffs’ brief.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.